China National Materials (OTCMKTS:CASDY) and Cementos Pacasmayo (NYSE:CPAC) are both industrial products companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, valuation, analyst recommendations, earnings, institutional ownership and profitability.

Earnings and Valuation

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This table compares China National Materials and Cementos Pacasmayo’s revenue, earnings per share and valuation.

Gross Revenue

Price/Sales Ratio

Net Income

Earnings Per Share

Price/Earnings Ratio

China National Materials

N/A

N/A

N/A

N/A

N/A

Cementos Pacasmayo

$376.01 million

2.16

$28.76 million

$0.32

29.91

Cementos Pacasmayo has higher revenue and earnings than China National Materials.

Analyst Ratings

This is a summary of current ratings and recommmendations for China National Materials and Cementos Pacasmayo, as provided by MarketBeat.com.

Sell Ratings

Hold Ratings

Buy Ratings

Strong Buy Ratings

Rating Score

China National Materials

0

0

0

0

N/A

Cementos Pacasmayo

0

3

0

0

2.00

Cementos Pacasmayo has a consensus price target of $12.50, suggesting a potential upside of 30.62%. Given Cementos Pacasmayo’s higher possible upside, analysts plainly believe Cementos Pacasmayo is more favorable than China National Materials.

Profitability

This table compares China National Materials and Cementos Pacasmayo’s net margins, return on equity and return on assets.

Net Margins

Return on Equity

Return on Assets

China National Materials

N/A

N/A

N/A

Cementos Pacasmayo

7.94%

5.72%

3.05%

Insider and Institutional Ownership

4.0% of Cementos Pacasmayo shares are owned by institutional investors. 0.2% of Cementos Pacasmayo shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Dividends

Cementos Pacasmayo pays an annual dividend of $0.50 per share and has a dividend yield of 5.2%. China National Materials does not pay a dividend. Cementos Pacasmayo pays out 156.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Cementos Pacasmayo beats China National Materials on 8 of the 9 factors compared between the two stocks.

Cementos Pacasmayo S.A.A., a cement company, produces, distributes, and sells cement and cement-related materials in the northern region of Peru. The company operates in three segments: Cement, Concrete and Blocks; Quicklime; and Sales of Construction Supplies. It produces cement for various uses, such as residential and commercial construction, and civil engineering; ready-mix concrete used in large construction sites; concrete blocks, such as paving units or paver stones for pedestrian walkways, as well as other bricks for partition walls and concrete blocks for structural and non-structural uses; and cement based products, including assembly gravity walls, beams and vaults, precast beams, sheet piles, seawalls, and piles, as well as bathroom and housing units. The company also produces and distributes quicklime for use in steel, food, fishing, and chemical industries, as well as mining, agriculture, and other industries. In addition, it distributes other construction materials manufactured by third parties, such as steel rebars, cables, and pipes. The company distributes its cement products and other construction materials manufactured by third parties through a network of 247 independent retailers and 394 hardware stores. Cementos Pacasmayo S.A.A. also sells its cement products directly to other retailers, and to private construction companies and government entities. The company was incorporated in 1949 and is headquartered in Lima, Peru. Cementos Pacasmayo S.A.A. is a subsidiary of Inversiones ASPI S.A.